H.R. 5366 · Signed into law · Taxation

Doug LaMalfa Federal Disaster Tax Relief Certainty Act

What it does

Extends the federal tax deduction for qualified disaster-related personal casualty losses to cover major disasters declared through December 31, 2026 (previously capped at 60 days after July 4, 2025).
Extends the income exclusion for qualified wildfire relief payments to cover federal disasters declared after 2014 and before 2027, regardless of when payments are received.
Allows unreimbursed personal casualty losses exceeding $500 per casualty to be deducted as an itemized deduction or as part of the standard tax deduction.

Official summary

Doug LaMalfa Federal Disaster Tax Relief Certainty Act This bill extends the federal tax deduction for qualified disaster-related personal casualty losses and the exclusion from gross income of qualified wildfire relief payments. Under current law, unreimbursed personal casualty losses arising in a qualified disaster area (qualified disaster-related personal casualty losses) are deductible (as an itemized tax deduction or as part of the standard tax deduction) if such losses exceed $500 per casualty. A qualified disaster area is an area with respect to which a major disaster has been declared during the period beginning in 2020 and ending 60 days after July 4, 2025, if the incident period begins on or after December 28, 2019, and on or before July 4, 2025. The bill extends the federal tax deduction for qualified disaster-related personal casualty losses by defining a qualified disaster area as an area with respect to which a major disaster has been declared if the incident period begins on or after December 28, 2019, and before January 1, 2027. The bill provides that the exclusion from gross income of qualified wildfire relief payments applies to such payments attributable to…

Latest action

Sep 11, 2026: Became Public Law No: 119-108.

Committee: Senate Finance